The Health October 2023 | Page 7

| Foreign News |

OCTOBER , 2023 | THE HEALTH

07

Eli Lilly acquires Point Biopharma for US $ 1.4b

IN a strategic move to enhance its cancer therapy offerings , Eli Lilly and Co announced the acquisition of Point Biopharma Global for US $ 1.4 billion . This acquisition provides Eli Lilly with access to experimental therapies designed for precise cancer targeting .

Eli Lilly ’ s decision to acquire Point Biopharma comes as the company seeks to strengthen its pharmaceutical pipeline , a move prompted by the intense competition faced by its cancer therapy Alimta from generic alternatives . The acquisition is also seen as an investment in the potential blockbuster drug tirzepatide , known as Mounjaro , which is expected to drive growth for the company .
Point Biopharma is currently conducting late-stage studies on radioligand therapy candidates , PNT2002 and PNT2003 . These innovative therapies combine radioactive particles that selectively eliminate cancer cells with molecules that attach themselves to tumours .
Eli Lilly ’ s offer of US $ 12.50 per share of Point Biopharma represents an 87 per cent premium over the stock ’ s recent closing price . Following the announcement , Point Biopharma ’ s Indiana-based shares surged by 85 per cent while Eli Lilly ’ s stock experienced a three per cent decrease .
Market analysts view this acquisition as carrying minimal regulatory risk since the two companies are not engaged in developing overlapping therapies . Additionally , Eli Lilly will gain access to Point Biopharma ’ s Indianapolis manufacturing plant for radiopharmaceuticals , further strengthening its capabilities in this area .
One of Point Biopharma ’ s late-stage therapies , PNT2002 , is currently being tested on patients with advanced prostate cancer that has progressed after hormone therapy . The company anticipates releasing late-stage data on PNT2002 later this quarter . This therapy is expected to compete with Novartis ’ radioligand therapy , Pluvicto , available in the US since 2022 .
The acquisition also includes PNT2003 , an experimental therapy designed for an ultra-rare digestive tract cancer , expanding Eli Lilly ’ s oncology pipeline . It ’ s worth noting that Point Biopharma has licensed both of these late-stage therapies to Lantheus Holdings since 2022 , and the collaboration with Lantheus is progressing as expected .
This acquisition demonstrates Eli Lilly ’ s commitment to strengthening its position in the oncology sector , adding promising therapies to its portfolio while addressing the growing demand for targeted cancer treatments .

Novo Nordisk ’ s Ozempic shows promise in CKD treatment

NOVO Nordisk ’ s GLP-1 blockbuster Ozempic generates optimism as a potential treatment for chronic kidney disease ( CKD ), marking a potential shift in CKD management . However , DaVita , a significant player in the dialysis industry , is sceptical about the findings .
DaVita shares a substantial portion of the dialysis market with its German rival , Fresenius . DaVita suggests that Novo Nordisk ’ s FLOW trial ’ s inclusion criteria for CKD patients may have limited application to the broader CKD population .
While Novo has yet to release detailed results , the company is confident in Ozempic ’ s performance . It has announced its intention to conclude the FLOW trial based on the recommendation of the study ’ s independent data monitoring committee . The trial is expected to deliver results in the first half of 2024 .
The FLOW trial assessed Novo ’ s Ozempic ( injectable semaglutide ) at the 1-mg dose as an addition to standard diabetes care for CKD patients . The trial aims to determine if Ozempic can slow CKD progression and reduce the risk of kidney failure and cardiovascular issues .
Dialysis , a standard treatment for kidney failure since the 1970s , has been used when the kidneys fail to remove excess fluid and waste from the blood . Typically , kidney failure results from health issues that gradually damage the organs over time , with diabetes posing the highest risk .
DaVita has been closely monitoring GLP-1 drugs , including Ozempic , for CKD . They are interested in whether Novo ’ s FLOW trial results demonstrate improvements compared to SGLT2 inhibitors , another class of diabetes medication .
DaVita ’ s concern is that Novo ’ s patient inclusion criteria may be too narrow and challenging to apply the trial ’ s findings to a broader CKD
population . Fewer than 10 per cent of current CKD patients meet the specific combination of factors required for inclusion in the FLOW trial .
DaVita also takes issue with the study ’ s five-part composite endpoint , which includes factors like the need for dialysis or a kidney transplant . Any significant findings related to these factors could have triggered the trial ’ s early termination .
Should FLOW demonstrate that Ozempic can reduce cardiovascular mortality in CKD patients , it would be a substantial win , as more CKD patients succumb to cardiovascular disease than those requiring kidney replacement therapy . Novo Nordisk aims to make a difference in CKD patients ’ lives by addressing the disease ’ s underlying cause , which affects over 800 million people worldwide .
While it ’ s early for Ozempic in CKD , some analysts predict that this drug , along with other GLP-1s known to impact obesity and diabetes dramatically , could potentially reduce the demand for dialysis .
DaVita operates over 2,700 outpatient dialysis centres in the US . Worldwide , CKD affects 10 per cent of the population , resulting in millions of deaths annually .
DaVita ’ s stock decreased by 18 per cent since Novo ’ s announcement regarding the early trial termination .

Kiat Lim ’ s ambitious expansion for Thomson

KIAT LIM , the scion of the Lim family , is set to lead Thomson Medical Group into a transformative phase , expanding it into a regional healthcare giant .
The company recently announced plans to acquire Vietnamese hospital operator Far East Medical Vietnam for up to US $ 381 million . If the deal proceeds , it will be Southeast Asia ’ s most significant healthcare acquisition since 2020 .
Far East Medical Vietnam owns FV Hospital in Ho Chi Minh , a 200-bed facility offering 30 medical specialities , including oncology , cardiology , and ophthalmology . The hospital serves patients from Vietnam and Cambodia and reported a 65 per cent year-on-year increase in net profit , reaching S $ 16 million ( US $ 12 million ).
Thomson Medical Group , led by Kiat Lim , who is the Executive Vice Chairman , aims to leverage this acquisition to establish a robust presence in one of Southeast Asia ’ s fastest-growing healthcare markets ,
Vietnam . The deal is on track for completion by the end of the year , pending approval from Vietnamese authorities .
The acquisition presents a significant opportunity for the group ’ s expansion plans . Kiat Lim has developed a strong rapport with FV Hospital ’ s CEO , Jean-Marcel Guillon , who has agreed to stay on for several years after the deal concludes . FV Hospital is expected to become a part of Thomson Medical from the beginning of 2024 .
To secure funding for the acquisition , Thomson Medical plans to use internal resources and external borrowings . All the necessary financing is reportedly in place , ensuring the deal ’ s success .
While the acquisition opens doors for growth , Thomson Medical already holds a substantial debt . Credit analysts will closely watch its financing structure and handling of this new acquisition . With the deal ’ s completion , the group aims to boost its earnings significantly .
Kiat Lim
The acquisition aligns with the broader expansion strategy of the Thomson Medical Group , focusing on growth in a fast-growing healthcare market like Vietnam , bolstering the group ’ s position in the region . Kiat Lim envisions Vietnam as the third pillar of growth for the group , positioning it for a promising future as it continues to expand existing operations .
This strategic expansion aims to capitalise on the region ’ s ageing population and increasing affluence as demand for medical services is set to rise . Kiat Lim , the heir-apparent of the Thomson Medical Group , is committed to ensuring the company ’ s transformation into a pan-Asian healthcare leader .
Jean-Marcel Guillon
Tycoon Peter Lim , Kiat ’ s father and the founder of the Thomson Medical Group , expresses confidence in his son ’ s capabilities and commitment to the group ’ s growth . The elder Lim emphasises the importance of Kiat benefiting from his experience while continuing to drive the group ’ s expansion .
Recognising the weight of the expectations placed on him , Kiat Lim maintains his unwavering commitment to achieving sustainable growth and elevating the group ’ s market capitalisation over the next five years . His driving force lies in a well-defined strategic vision to foster enduring value and influence within the healthcare sector .